Country overview

#86

Belgium

Country stats

Rating Points

140

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

1.4%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

161 000

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

125.6

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Legally allowed

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Moderate danger

The overall level of security in a given country based on open data.

Crypto Salaries

No info

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Difficult

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Low

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

Good

Medium

Bad

intro

Belgium has one of the highest tax burdens in the EU and is not very friendly towards crypto businesses. Moreover, the regulation itself is quite developed and detailed.

Security level

Belgium has a Moderate danger security level according to our rating. Jurisdiction has 51.1 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.1 per 100,000 inhabitants a year. Level of firearm related death (3) 1.40 per 100,000 inhabitants a year.

Crypto Payments

To date, no specific criminal legislation concerning virtual currencies has been adopted in Belgium. Unlike other jurisdictions, the legal use of those currencies is not prohibited (4) in Belgium.

Crypto Salaries

In any case, the wage protection law provides that with regard to an employee, his wages must be paid in money in the currency that is legally used in Belgium. Since Bitcoin and other cryptocurrencies are not legal tender, it is currently not possible (5) to pay the wages of an employee who is employed in Belgium in crypto. What is possible is the situation in which a self-employed person or company is paid in crypto currency for the provision of a service , insofar as the payer agrees to this.

Legal

Belgian crypto platforms had to register(6) with the FSMA until September 1, 2022. To keep their active registration, crypto-service providers had to satisfy seven criteria, including being incorporated as a business with a minimum capital of €50,000.

At present, there is no specific (7) legislation in Belgium aimed at ICOs, so there are no ICO-specific regulatory requirements for companies that are planning a token sale in Belgium.

Regulator is FSMA - Official statement about VASPs from FSMA website (8).

On 23 February 2022, the Belgian Royal Decree of 8 February 2022 (9) on the status and supervision of service providers for the exchange of virtual currency and fiat currency and custodian wallet providers ("Virtual Currency Royal Decree") was published in the Belgian State Gazette. The Virtual Currency Royal Decree introduces registration requirements and operating conditions for virtual currency service providers into Belgian law. The Virtual Currency Royal Decree will enter into force on 1 May 2022, with a grandfathering regime for existing service providers.

As of 1 May 2022, persons established in Belgium whose regular professional activity, even as an ancillary or complementary activity, consists of providing or offering to provide exchange services between virtual currencies and fiat currencies ("crypto exchange services") and offering custodian wallets on Belgian territory will be required to register with the FSMA.

Only one company bit4you currently in the list (10) of registered VASPs.

Taxation

Tax name	Index
PIT tax Min	25
PIT tax Max	50
Corporate tax (CIT)	25
Min Individual CGT (for crypto)	25
Max Individual CGT (for crypto)	25
Wealth tax Min	0.15
Wealth tax Max	10

PIT

According to PWC (11), the federal tax rates for the 2023 income year range between 25% and 50%.

CIT

CIT is levied at 25% by PWC(12).

CGT

Capital gains are subject to the standard CIT rate of 25%, according to PWC(13).

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4 and 7)Virtual Currency Regulation: Belgium. Article

5)PAYMENT FOR SERVICES VIA CRYPTO. Article

6)Cryptocurrency regulation in Belgium 2022. Article

8)Cryptocurrencies: new rules enter into force. Article

9)FEDERALE OVERHEIDSDIENST FINANCIEN. Belgian Royal Decree of 8 February 2022. PDF file

10)Virtual Asset Service Provider (VASP). Article

11)Individual - Taxes on personal income. PWC

12)Corporate - Taxes on corporate income. PWC

13)Corporate - Income determination. PWC

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intro

Belgium has one of the highest tax burdens in the EU and is not very friendly towards crypto businesses. Moreover, the regulation itself is quite developed and detailed.

Security level

Crypto Payments

To date, no specific criminal legislation concerning virtual currencies has been adopted in Belgium. Unlike other jurisdictions, the legal use of those currencies is not prohibited (4) in Belgium.

Crypto Salaries

Legal

At present, there is no specific (7) legislation in Belgium aimed at ICOs, so there are no ICO-specific regulatory requirements for companies that are planning a token sale in Belgium.

Regulator is FSMA - Official statement about VASPs from FSMA website (8).

Only one company bit4you currently in the list (10) of registered VASPs.

Taxation

Tax name	Index
PIT tax Min	25
PIT tax Max	50
Corporate tax (CIT)	25
Min Individual CGT (for crypto)	25
Max Individual CGT (for crypto)	25
Wealth tax Min	0.15
Wealth tax Max	10